Two ways to plan a goal
Every savings goal can be planned from either end. If you know what you can afford each month, the first tab tells you when you will get there. If you have a fixed date, such as a wedding, a move or a car you need next year, the second tab tells you the monthly amount to set aside. Both include interest, so money parked in a high-yield savings account helps a little along the way.
For short goals the interest makes a modest difference. Saving $500 a month toward $20,000 with $2,000 already saved takes 36 months without interest and about 34 months at 4%. Over longer horizons the gap grows, which is why goals more than five years away are often invested rather than kept in cash.
Making the goal stick
The most dependable way to hit a savings goal is to make the saving automatic. Set up a transfer for the day after payday into a separate account named after the goal, so the money leaves before you can spend it. Seeing a named balance grow, whether it is labelled "Japan trip" or "House", keeps motivation higher than one large pot.
If the monthly figure looks too big, try stretching the deadline a few months or lowering the target for a first milestone. A goal you can actually keep up with beats an ambitious one you abandon in month three.
Common questions
How long does it take to save $10,000?
At $500 a month it takes about 20 months, and interest barely changes that over such a short time. At $1,000 a month it takes about 10 months.
Where should I keep money for a savings goal?
For goals under about three years, a high-yield savings account or CDs keep the money safe and earn interest. Longer goals can be invested, accepting that the balance will move up and down.
Should I save weekly or monthly?
It makes little difference to the total. Choose the schedule that matches your paycheck so the transfer happens automatically.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.